UC review - over 16k childs savings

[Gabbygirl]

I need advice, i am so worried and stressed!

I have been asked to submit 4 months bank statement for a UC credit review. At first, I had absolutely no worries. I was talking to a mum at the school about it and she said to make sure that i upload my children's savings account as she had too due in her review.

I said to her that i didn't think they was included in my UC claim as they are children's savings accounts, in their own name. She said if I had access to them ( which of course i do, i set them up!) then they are included in my capital.

I rushed home and i've been doing some online research and the information is confusing but it does look like she is right.I can't believe i have let this happen.

I have gone through all my bank statements/uc payments and if my math's is correct i have been overpaid over £14,000 in the last 5 years.
( Any month over £16,000 savings i have calculated to owe back in full, any month over £6,000 but under £16,000 i have done £4.35 for every £250??)

Between nov 2025 and July 2020 - there is 11 months i was over the 16k and should of not got anything and besides 4 months, every other month the savings was inbetween £6000 and £15,999.

( I have some savings myself between £2,000 and £5,000 over the 5 years. I never included my children's savings, so depending how much i had, would take me over the 16k at times but not constant)

I feel sick with worry and i feel so guilty that such a stupid mistake can have a massive affect on my children and our home life. I am a single mum to 3 children and the thought of being taken away from breaks my heart. I know i have made a mistake and it is not fair for tax payers to have to pay for my mistake. I know i need to pay it all back and make everything, I am just so scared and i just don't know how.

I don't expect sympathy, this is my mistake and i need to handle it but any advice would be hugely appreciated.

Which is why it's important to point this out because the benefits system is very complex and the overwhelming majority of people are clueless about it (including some claimants, but not you obviously 😊).

I doubt you'll be in trouble if it was a genuine oversight.

You sound lovely - I work in music and know some very well off and known people - I remember one saying to me that he never begrudges his huge annual tax payments because he’s just so bloody greatful to be in the position of having to make them !

Well that would only work if you never accessed the money whilst claiming benefits. If they are money going in and coming out then they would want to know what for, and things like holidays or cars or regular spending at a supermarket would indicate it was not a child's saving account

Then you can take off £7.5k of savings then for definite as that is very clearly your childrens money. So unless you had £22999 in total at any point, you'll be absolutely fine.

Thank you so much for your advice!!
Are your children’s savings in a trust fund/isa or a child’s savings account in their own name??

Thank you so much! I will keep these links if I need them for evidence!!!!

If you are worried please contact citizens advice and ask for an appointment. We have access to details of all benefit rules and can double check. Don’t rely on the internet to scare you. At the review if they want to count them ask for the rules in detail. Benefits can be very complicated and it’s no good guessing.

Gabby, even if you wanted to, you cannot legally use the children's inheritances for your own purposes. You are the named trustee and are responsible for overseeing the holding of these legacies on behalf of the children until they are no longer minors and can access the funds themselves. These funds sit outside the family's assets.

This is why some building societies have special trust accounts for children who are beneficiaries of a will.

I hope you can get this review sorted and can stop worrying.

I have to say that I have never seen such spite and nastiness on MN this last couple of weeks directed at pensioners and those claiming benefits - really depressing and disturbing to see the level of vitriol.

I’m going to leave this thread here, thank you to everyone who took the time to comment, even the judgmental ones!!!

For a bit or clarity, do not judge people from what little you know. I work and I pay taxes. I have worked since my youngest child was 7 months, I chose to return to work before I had too.
I have a refurbished phone on contract for £12 a month, my car is 2007, I have 3 children living in 1 bedroom, I don’t have full fibre internet, sky or netflix, I buy 90% of my kids items off vinted.

if I upgraded my phone, got a new car, rented a bigger house, changed my internet/ got subscriptions, brought all their clothes brand new I could easily spend all my UC each month. I make the decision to cut back on things so that I am able to have some personal savings (£4,000 at current) so I can cover any emergencies or unexpected expenses. I am a single mum of 3, It is down to me to make sure we are ok.

if I lived a more lavish lifestyle, no one would have a negative thing to say because internet, a car, a phone ect can be argued as essential and there would be no savings left. At the end of the day what’s really the difference? If I splash the cash each month or if I’m sensible? I’d much rather someone look after the money they are given than spend it, just to spend it.

anyway, thanks again to everyone! I will update once it’s all be resolved incase anyone else is in this position one day, from this post alone I think it’s clear to see the information is not clear….

Ok, so ideally you should have done some research, joined a fb group about UC etc. For whatever reason you haven't, a lesson learnt going forward...

I have a friend who works in this department so have gained aome knowledge over the years. I do believe if the money hasn't come from you (which could be seen as deprivation of capital to put into the savings accounts to avoid being seen as over the limit) so gifts for them from other sources, this is ok.

The best thing to do is just be honest, show them this post. The idea that benefits should just stave off poverty has changed to so many rules about being allowed, say a mortgage sale to buy another house, savings up to £6000, disability payments not counted as income.

You may or may not have to pay it all back, knowing will make you feel less stressed. Xx

Thank you!
if it is money I am entitled to, I am more than happy to pay it back. I just want this resolved

Gabbygirl you don’t have to justify yourself to the judgy posters on here! You sound like a lovely responsible mum just doing your best with the hand you have been dealt. Some people are just jealous of everybody & e everything! My answer to them is go on benefits if you think its that great! Good luck with your review!

I got one at the time x

@pigmygoatsinjumpers as OP has left thread and I didn't want to jump on with my own query, can I ask if you know much about legacies left to children in wills? It's just that my former partner's uncle left money to my children in his will, but I have barely any contact with my ex (with another partner, etc etc). I didn't get involved at the time the will was executed as we weren't together but at least he still saw the kids then, and they were told about it. I'm not sure how things were left, but now I am becoming concerned about the money. My oldest is now 18, but I have heard nothing. Could my ex have been nominated as the sole trustee and given full responsibility for investing the legacies? I'll have to request the will won't I?

Unless I am missing something I agree.

As you have access to their accounts, yes it should of been included. I know this as my children have saving bonds accounts but when I asked UC about setting them up they said I couldn’t have access to them so they are under another trusted family member outside our household, you will have to repay it. They do payment plans though.

The op is being sensible saving a little each month in case of emergencies and to budget for more expensive
months eg school uniforms/ shoes appliances breaking down/MOT etc. She’s hardly building wealth with a few thousand pounds she has saved over a good few years! Sounds like some of you want the working poor to live hand to mouth.

@NotrialNodeal
2.5k is from my nans will.
£1,000ish is from Christmas/ birthdays
£500ish is from my wages/benefits.

this is over 5 years. So yes I can be gutted for my kids as this is their inheritance and Christmas/birthday money and it is my fault they are not going to have it. So yes I am gutted. I feel so awful as any good mum would. Everything I do is for the better of them but I have lost them their money.

Imagine being "gutted" a parent has made extra sacrifices in their spending to save £100 a year for their kids 🙄

So it seems.

Oh come on. What do you want people to do if they happen to have a little bit left at the end of the month? Phone up the DWP and offer to return it? Ask them to reduce next month's payment to the exact penny they need? Send it to you because you clearly think you've paid for it? But if they spent it on something rather than saving it you would then claim it was wrong for them to be able to buy "luxuries" when on benefits. They clearly need the majority of the payment. Claimants don't get the decide the amounts.

OP, whatever happens, please do a review of the best place to save money for your DC. Halifax pay just 1% interest on funds in a children's account above £5k. Your DC's money can potentially earn a higher rate of interest elsewhere, and you as the trustee of their inheritance have an obligation to ensure you manage their money for their best interests.

I'm not pissy, I'm genuinely baffled. I dont claim UC and my kids don't have nest eggs like this, and I dont have above average savings like OP.
And I appreciate you think I look silly, but the reactions to my posts and the similar comments from others woukd indicate not everyone agrees with you.

Sorry OP, whilst you technically hold the money "in trust" for your DC as they are under 16 and can't manage it themselves, the terms of the Halifax Kid's Saver says:
"Can I withdraw money? Yes, you can make as many withdrawals as you like."
^^
You technically therefore have full access to ALL the money in the DC's savings account and it may well be counted for your UC claim.

It also sounds like the £7,500 inheritance was paid to you, and you then split it up, which doesn't help either. It really ought to have been paid directly into an account in each DC's own name ie a JISA.

I wish you well in resolving this. The Government really ought to make it crystal clear what does and does not count as a dedicated children's account.